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dzerveviktory

posts: 3

Nov 12, 2007 4:05 PM ET Quote Report Abuse

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I would like to start off by saying that this is my first post to startupnation.com.

Now I have worked in a hospitality type setting since I was 13 with my Dad, who is a Certified Executive Chef of almost 30 years experience. As such I know pretty well the ins and outs of operating the business day in and day out. However, I have a very limited knowledge of how to go about starting up a business.

If any bar owners out there could shed some light onto some bumps in the road during your startup phase that could be useful in helping me have a smoother path I would greatly appreciate it.

I am still in the planning phases of this business venture so nothing is laid in stone.

So information I am interested in is do you lease a building, or did you have the building built. How much did you have to take loans out for on equipment. What computer system do you recommend, etc.

Thanks in advance,

Brett

ShopDrew

posts: 3

Nov 12, 2007 7:22 PM ET Quote Report Abuse

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I`m right there with you Brett.

In fact, when I saw this posting, I wondered if it was my proposed future business partner! But I guess he hasn`t gotten on here yet. (we just started looking at this site yesterday.)

We are planning to open a bar next year, in our neighborhood. We are both natives to our city, and have decent experience in the hospitality industry (and in bars...) but don`t know where to start with some things.

In our position, it seems renting or leasing is the only way to go. We think we`ll have an easy time with city-mandated parking requirements. Getting furniture and most of the equipment will be easy as well.

What we don`t know is:

how to estimate initial remodeling costs and lawyer fees

inventory restock costs

utilities

payroll

taxes...

It`s easy to get overwhelmed, but I wish you the best fortune, and I hope we can help each other out!

I`ll post up some more as soon as I figure out if I`m allowed to post links to other sites. (I can understand why I wouldn`t be allowed to.)

Cheers,

Andrew

Aimee

posts: 9

Nov 12, 2007 10:27 PM ET Quote Report Abuse

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Hello Andrew & Bret,

My mother has owned a bar for just about 30 years. I would be happy to answer all of your questions with her help of course.

After looking at your questions I can tell you that some of your questions will depend on the size of Property you buy, rent or lease. i.e utilities and remodeling.

She bought her Property 30 years ago and now the area has changed and she wants to sell her building and business. She`s older and has cancer......she doesnt have the energy for the area change. So when looking into buying make sure you take into consideration of potential changes in the area. If you lease and rent you will still have the option to transfer if your liquor license allows you to (within the same city or county limits obtain initially)

She hired a bookkeeper years ago to maintain her taxes and says this is the best way for her (less stress)

Payroll....She pays 40.00 + tips a shift daily up to 7 pm and then 60.00 + tips from 7-close.

Her utilities are around $2500.00 a month but that depends on the gas or electric (heat etc) and space.

Inventory restock costs really depends on your customers and their preferences. She goes to the local liquor store to restock herself. (in state that follows the liquor license)As well as Wine. Beer is delivered and restocked by the distributor)

If you have any other questions, just ask! Hope this helped

Aimee

dzerveviktory

posts: 3

Nov 13, 2007 12:43 AM ET Quote Report Abuse

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Thank you so much for both of your inputs.

In your opinion Aimee what is the biggest draw to your bar? Do people usually come for sporting events or to shoot pool, etc.

Whats your average tab size per night?

What kind of hours are you open?

What kind of food if any do you serve?

Swaney

posts: 4

Nov 13, 2007 5:24 PM ET Quote Report Abuse

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Great idea and I have found a bar/restuarant in a local town. The bar/restuarant is for sale with 8 apartments above it. It was built in the early 1900s and is really a great little place. It has capacity for 150 people and has 2 bars. The taxes are about $7,000 per year and it claims to bring in about $120k per year in reciepts for the bar and neted $60k last year.

I have never owned a bar, I have an interest in doing so with a person that could run it legally. I am a marketer and run a small business. I know I can put together part of the financing and a great concept for it, but I need someone to run the establishment that has experience doing so. Do you have an interest? Let me know.

-------------------------

If you don`t do it, someone else will...

Aimee

posts: 9

Nov 13, 2007 9:57 PM ET Quote Report Abuse

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Brett,

You actually will have regulars to shoot pool...so yes a definite must to have in a bar. Its good to have a sports day too. What we usually do is have Sunday and Monday night football. As well as ladies night, karioke night , maybe a live band etc. You just have to be involved in entertaining. You will have your regulars....regular day customers, night customers, weekend customers etc. We have 2 sides to the bar now....one side is where the juke box is and tables..more area to dance...the other side has 3 pool tables. You can call a vending company and have them bring the pool tables and you make a commission off of them or yoiu can buy your own out right and keep all the money...the juke box works the same way. Alot of people like the poker machine games on the bar. The state of Ohio just passed a law that allows a gambling machine in the bar (like slots) and people love it too.

I have only sold nachos and hot dogs but food really doesnt have a great turn out unless you make yours a Sports Bar. People are happy at regular establishments with peanuts and chips. Also, there is more to deal with as far as the health dept and getting a food permit.

The hours are 5 am (yes AM!) to 2:30 am. The first shift works 5-1 pm. or 6-1 then 1-7pm and 7-2:30. This bar is more like a cheers atmosphere with regulars coming in at 5 n the morning. But that may not work for everyone. Alot of the people that come in has known that barmaid for years.

On a average. The morning shift would run 400. the second around the same and the night shift during the week anywhere from 8-2,000...just depends on what is going on that night. Pool league nights are always good too. I forgot to mention that any barmaid that runs 600 or more makes 10% off every hundred more they run.

Swaney....I live in Cincinnati......where is the bar with the 8 apts at?

Our bar has 2 apts upstairs....it pays the mortgage itself. That works well.

dzerveviktory

posts: 3

Nov 14, 2007 12:15 AM ET Quote Report Abuse

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So are you recommending that I have the building built with 2-3 apartments over it as a way to subsidize the bar operating costs?

KJC

posts: 69

Nov 14, 2007 8:57 AM ET Quote Report Abuse

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Welcome to the site!

I do not own my own bar, but have looked into it. One of the biggest hurdles to overcome is obtaining the liquor license. I am not sure where you are located, but I know in my area there are only a set number offered by the licensing agent. So, in order to get one, you need to buy out someone else`s or wait on a list until one comes available.

Also, in starting your bar, or any business, is to identify multiple streams of revenue. Examples for your bar would be drinks, food, pool table rental, video games, etc. The comment about having apartments above the bar is one additional way to create additional revenue streams.

With respects to creating projections on start-up costs, the best route to take is to talk with contractors, lawyers, and any other individual that you might utilize. In doing so, they should give you a good idea of how much you can expect to pay for things. At the end of the day, projections are estimates. We all know estimates are really just educated guesses! Good luck and keep us posted!

Aimee

posts: 9

Nov 14, 2007 8:19 PM ET Quote Report Abuse

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That is just an incentive because of the extra income coming in. BUT of course you have the neg & pos with renting to people!

KJC is right about the liquor license. My mother is getting ready to sell hers now, when she does it will go fast because of all the people wanting one.

Good Luck with your new business!!

ShopDrew

posts: 3

Aug 23, 2008 10:52 AM ET Quote Report Abuse

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Thanks to all of you for your input. I know it`s been a while since I posted, but I`ve realized that I need to take a couple steps back.

Naturally, I`ve got more questions.

How does one find out about licenses that are up for sale?
How does one begin a business plan for a bar?
Once I have a business plan together, I expect I`ll have a few actual locations in mind. Then I can start looking for remodeling estimates from contractors. (that was going to be a question, but I sort of answered it before it formed properly)

I know everyone`s story is different.
I hope I can get some more input, and some more first-hand accounts of processes, start - finish (plan - open), and bumps in the road.
Who was your target audience?
Why did you want a bar?
What do you wish you had done differently? -maybe the most important question I`ve come up with.

Thanks again!
-Andrew

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